Rose Rock Midstream IPO: Solid Deal In An 'Under The Radar' Sector [View article]
Yes, they are in a very good capital position spot to grow yield. Parent company is in a good spot too balance sheet wise, both entities more favorably structured for holders than the 2007 ipo of these assets as SGLP. Am long RRMS.
the salt facility is on NRGY's books not NRGM's. has nothing at all to do with NRGM at this point and would only be a dropdown acquisition if it was greenlit as NRGY would use NRGM's stronger balance sheet to fund the transition from salt facility to natty has/ngl storage.
actually NRGY does have dropdowns for NRMG: 38.4 Bcf storage facility in TX; a salt production business that will be converted into natural gas/NGL storage capacity; a west coast NGL business located in CA.
Dividend Impetus To Buy Chesapeake Granite Wash Trust [View article]
In my opinion these three recent 'growth Trusts SDT/PER/CHKR are all 5-10 year plays not 20 years. My job is to make money in the market and there is never anything wrong with timing a sale instead of holding forever. Even though there is a finite end date, this isn't a bond with a steady even payout.
I believe there is an excellent chance that the unit prices on all three remain rather stable over the next 5 years or so while the distributions are large. The overall payout should CHK perform(and their track record is a good one) will be in the $35+ range over 20 years. A big chunk of that comes in the next 5-6 years.
I would expect the unit prices to begin their fall to the eventual near zero market by year 10 or so reaching near there by year 20.
The analysis above of the smallish return is including the back 1/2 years when production will fall steadily and unit price most likely along with it. To me this is 5-10 year play, not a 20 year play and one in which timing the exit will be crucial.
I'm long both PER/CHKR and am looking forward to the hefty distributions in 2012. I'd look at the return over the next 5-6 years when deciding if this is a good investment and not the 20 year timeframe. Can any of say with any certainty what the world will look like in 20 years? I can't.
Sometimes we get lost in the minutiae. I know I look at a lot of IB analyst reports and on them all I toss out anything looking further out than 18 months. Been analyzing and trading ipos for a long time and for 90% of them you simply cannot forecast accurately out more than 18 months, and sometimes that is even a stretch. With this one, think you can be pretty secure 5 years out and the return in that time is going to be pretty hefty and odds are strong the return/unit price performance combined will outperform the overall market...even assuming the unit price remains stable over the next 5 years or so which it most likely will. Again I'd expect the unit prices of all three to begin descent to eventual 0 sometime between year 5 and 10.
think it is a mistake using the long term return(20 year) here to judge the investment instead of the 'shorter' 5 year return.
On a long enough timeline, the survival rate for everyone drops to zero - Fight Club.
Digital Domain Media Group IPO: Beware Of Ugly Earnings Statements [View article]
Yes the piece above was written initially for tradingipos.com subscribers pre-ipo when the price range was $10-$12. More interesting at this market cap, halved from the projected market cap this piece was towards. Advised my subscribers pre-ipo to avoid this one $10-$12 range and on actual pricing. $4-$5 it becomes an interesting spec play.
The only real difference I can see between PER/CHKR compared with SDT/ECT is the latter came out first. There seems to be a supply/demand issue with the units here currently on these high yield energy deals. Too much stock for demand. PER/CHKR will distribute about $6 combined in cash to holders in 2012. If they simply maintain the current unit price through those distributions, they should easily outperform the overall market.
chkr/per look very attractive here, seems to be a unit supply/demand issue in the sector though. CHKR will distribute roughly what ECT will in 2012, big unit price disparity between the two though.
I'm long both CHKR/PER....first PER distribution comes this month fwiw.
C&J Energy Services' IPO: Plenty of Intrigue [View article]
last in, first out to raise cash at a lot of places which means recent ipos often get rocked during a sell-off....happens often with ipos that come out right before a market fall,,,and this past week was a steep one. I got stopped out of the thing on pricing break.
Co-IPO Pick of the Week: C&J Energy Services [View article]
Francis, you are wrong and may want to actually read the fine print. 100% of the company is not up for sale. The shelf had to be filed as part of the contract language in the 2010 private placement. the final prospectus clearly states that directors/sponsorts/execs will not sell any shares until the usual 180 day lock-up. That takes up the bulk of the registered shares in and of itself. A shelf like this happens on ipos a few times each year and often has more to do with share conversions and contract language from placements. 100% of the company is not up for sale, you are incorrect.
C&J Energy Services' IPO: Plenty of Intrigue [View article]
I don't include stock options in the sharecount...no doubt over the next few years a number of them will be exercised, at time of ipo though 51.9 million sharecount from page 9 of the final prospectus....if you plug in future potential option dilution yes around 58 million.
4 IPOs That Deserve More Attention [View article]
Rose Rock Midstream IPO: Solid Deal In An 'Under The Radar' Sector [View article]
Inergy Midstream IPO Disappoints [View article]
Inergy Midstream IPO Disappoints [View article]
Dividend Impetus To Buy Chesapeake Granite Wash Trust [View article]
I believe there is an excellent chance that the unit prices on all three remain rather stable over the next 5 years or so while the distributions are large. The overall payout should CHK perform(and their track record is a good one) will be in the $35+ range over 20 years. A big chunk of that comes in the next 5-6 years.
I would expect the unit prices to begin their fall to the eventual near zero market by year 10 or so reaching near there by year 20.
The analysis above of the smallish return is including the back 1/2 years when production will fall steadily and unit price most likely along with it. To me this is 5-10 year play, not a 20 year play and one in which timing the exit will be crucial.
I'm long both PER/CHKR and am looking forward to the hefty distributions in 2012. I'd look at the return over the next 5-6 years when deciding if this is a good investment and not the 20 year timeframe. Can any of say with any certainty what the world will look like in 20 years? I can't.
Sometimes we get lost in the minutiae. I know I look at a lot of IB analyst reports and on them all I toss out anything looking further out than 18 months. Been analyzing and trading ipos for a long time and for 90% of them you simply cannot forecast accurately out more than 18 months, and sometimes that is even a stretch. With this one, think you can be pretty secure 5 years out and the return in that time is going to be pretty hefty and odds are strong the return/unit price performance combined will outperform the overall market...even assuming the unit price remains stable over the next 5 years or so which it most likely will. Again I'd expect the unit prices of all three to begin descent to eventual 0 sometime between year 5 and 10.
think it is a mistake using the long term return(20 year) here to judge the investment instead of the 'shorter' 5 year return.
On a long enough timeline, the survival rate for everyone drops to zero - Fight Club.
Digital Domain Media Group IPO: Beware Of Ugly Earnings Statements [View article]
Dividend Impetus To Buy Chesapeake Granite Wash Trust [View article]
InvenSense IPO: Recommend On Strong First Half FY12 [View article]
Chesapeake Granite Wash IPO: Favorably Structured, Easy Recommend [View article]
chkr/per look very attractive here, seems to be a unit supply/demand issue in the sector though. CHKR will distribute roughly what ECT will in 2012, big unit price disparity between the two though.
I'm long both CHKR/PER....first PER distribution comes this month fwiw.
Rentech Nitrogen Partners IPO: Fairly Valued [View article]
C&J Energy Services' IPO: Plenty of Intrigue [View article]
C&J Energy Services' IPO: Plenty of Intrigue [View article]
Co-IPO Pick of the Week: C&J Energy Services [View article]
C&J Energy Services' IPO: Plenty of Intrigue [View article]
Groupon Files for IPO as Another Tech Bubble Looms [View article]
Might want to check cash flows and re-write that part.